Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Audit Sampling, Audit Techniques and Analytical Procedure

After evaluating a sample for tests of controls, the auditor concludes that sampling has not provided a reasonable basis for conclusions about the population. Which response is specifically described in SA 530 as an example for tests of controls?

The auditor might extend the sample size, test an alternative control or modify related substantive procedures. SA 530 gives these as examples of tailoring further audit procedures when sampling has not given a reasonable basis for conclusions about the population tested.

  1. AExtend the sample size, test an alternative control or modify related substantive proceduresCorrect
  2. BReduce the assessed risk and stop further testing
  3. CAsk the audit committee to select a new sample
  4. DReplace all tests of controls with analytical procedures under SA 520 only

Explanation

SA 530 says the auditor may request management to investigate misstatements, or tailor the nature, timing and extent of further procedures. For tests of controls, the example is extending the sample size, testing an alternative control or modifying related substantive procedures. The other options are not stated and would not provide the required assurance.

Did you get it right without looking?

One question tells you little. A timed set on Audit Sampling, Audit Techniques and Analytical Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Audit Sampling, Audit Techniques and Analytical ProcedureFree diagnostic mock

More Audit Sampling, Audit Techniques and Analytical Procedure questions